Hawaii Public Utilities Commission Gives Green Light to Hawaiian Electric’s $250M Credit Facility for Utility Accounts Receivable

Approval of $250 Million ABL Facility for Hawaiian Electric Industries, Inc. by Hawaii Public Utilities Commission

Hawaiian Electric, a subsidiary of Hawaiian Electric Industries, recently received approval from the Hawaii Public Utilities Commission for a $250 million asset-based lending facility. This facility, detailed in HEI’s SEC form 8-K, uses accounts receivable as collateral and provides the company with increased financial flexibility.

The approval, expedited at Hawaiian Electric’s request, comes at a crucial time as the company navigates ongoing litigation related to the Maui wildfires. The facility will support operational activities and enhance liquidity management, addressing immediate financial needs and potentially stabilizing the company’s finances in the long term.

While the use of accounts receivable as collateral may indicate liquidity constraints, the approval of this credit facility is a positive development for Hawaiian Electric. Investors should monitor the company’s overall debt levels and receivables management to avoid potential cash flow issues.

Overall, this move by Hawaiian Electric demonstrates proactive financial management amidst legal challenges. The approval of the $250 million ABL facility is a significant step towards ensuring the company’s financial stability and operational resilience.

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